[Al] CBI Morning Review - 2009/5/6 Aluminum Market

SHANGHAI, May 6 (CBI China) -- The US Institute for Supply Management (ISM) showed on Tuesday that the US service sector shrank again in April, experiencing contractions for 7 straight months, but the pace has been relatively slow compared to March. The ISM non-manufacturing index rose to 43.7 in April from 40.8, better than expected, but the data was still lower than 50, an indication of business contractions. Ben Bernanke, Chairman of Federal Reserve (Fed) told Congress that the economy was bottoming out. Bernanke's optimistic talk and the slower contractions of service sector stimulated US dollar to rise. In this context, strong US dollar dragged down overnight LME base metal prices. LME aluminum price fell to USD 1,530/mt, down USD 5/mt. The inventories increased by 4,825mt to 3,797,125mt. Yesterday, SHFE aluminum fell back, and SHFE aluminum price will remain high with limited downward room in the short term, but will meet greater sell-off pressure in the medium term.

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